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Use the following information to calculate the post-deal EPS. Assume no synergies. Acquirer's net income 1,000.0 Target's net income 100.0 Debt financing 500.0 Equity financing
Use the following information to calculate the post-deal EPS. Assume no synergies.
| Acquirer's net income | 1,000.0 | |
| Target's net income | 100.0 | |
| Debt financing | 500.0 | |
| Equity financing | 500.0 | |
| Acquirer's shares outstanding | 350.0 | |
| New shares issued in an acquisition | 100.0 | |
| Tax rate | 20.0% | |
| Interest rate on new debt (pre-tax) | 5.0% | |
Select one:
3.09
2.39
2.44
2.40
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Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
